The USDJPY moved sharply higher yesterday after dipping near the 100 day MA found support buyers. The subsequent run into the USD took the price screaming higher and in the process moved back above the 100 and 200 hour MAs (blue and green lines) on it’s way to an old swing area between 115.59 and 115.687 (see red numbered circles). The high price stalled near the high of that swing area.
In trading today, the price action has seen down and up price action.
The first move lower saw the pair move down to test the 200 hour MA (and 38.2% of the range since the Feb high) at 115.14. Holding that level, gave the buyers the go-ahead to push the price higher.
The move higher has found resistance near the low of the aforementioned swing area (see red numbered circles) in addition to the 61.8% of the range since the February high at 115.597. The current price is at 115.52.
Going forward, in the short term watch the 115.369 level (50% midpoint) as a downside target. Move below and more probing can be expected as traders work their way toward the end of week (with price action between technical levels).
Conversely, get above the 115.597 and then the 115.685 level and traders will look toward the swing high fro Feb 15 (last week’s high) at 115.867.
